This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.nytimes.com/2014/01/17/business/international/car-sales-in-europe-end-2013-with-a-rally.html

The article has changed 6 times. There is an RSS feed of changes available.

Version 0 Version 1
Car Sales in Europe End 2013 With a Rally Car Sales in Europe End 2013 With a Rally
(about 3 hours later)
PARIS — European car sales ended the year on a strong note, raising hopes of a market rebound, despite another year of contraction. PARIS — European car sales ended 2013 on a strong note, raising hopes of a market rebound, despite another year of contraction.
The annual decline of 1.7 percent in 2013 was much smaller than analysts had anticipated after the year got off to a dismal start, and the December gain of 13.3 percent from a year earlier was the best monthly increase since 2009. The annual decline of 1.7 percent last year was much smaller than analysts had anticipated after a dismal start, and the December gain of 13.3 percent from a year earlier was the biggest monthly increase since 2009.
The 28-nation European Union’s new car registrations, a proxy for sales, totaled 11.9 million vehicles for the year — the smallest number since 1995, when the bloc was made up of just 15 countries, according to the European Automobile Manufacturers’ Association. The European Union’s new car registrations, a proxy for sales, totaled about 12 million vehicles for the year — the smallest number since 1995, when the bloc had about half as many countries, the European Automobile Manufacturers’ Association reported on Thursday.
While car sales have bounced back in the United States since the financial crisis and remained strong in China, Europe has been battered by a punishingly high jobless rate, the hangover from the euro zone sovereign debt crisis, and even a cultural shift that has left young people less interested in driving than their parents’ generation was.While car sales have bounced back in the United States since the financial crisis and remained strong in China, Europe has been battered by a punishingly high jobless rate, the hangover from the euro zone sovereign debt crisis, and even a cultural shift that has left young people less interested in driving than their parents’ generation was.
“We believe the market bottomed last year and the worst is behind us,” Peter Fuss, of the Ernst & Young Global Automotive Center in Frankfurt, said. He estimated that sales this year would rise by as much as 4 percent.“We believe the market bottomed last year and the worst is behind us,” Peter Fuss, of the Ernst & Young Global Automotive Center in Frankfurt, said. He estimated that sales this year would rise by as much as 4 percent.
Consumer confidence is improving, but remains weak, he noted. And he pointed out that car sales have received significant “artificial” support in the form of manufacturer discounts, self-registrations by dealers (in which the cars are then sold as “used”) and trade-in incentives for older cars in Spain. Consumer confidence is improving, but remains weak, he noted. And he pointed out that car sales have received significant “artificial” support including from manufacturer discounts and trade-in incentives for older cars in Spain. “We’ll have to wait for 2015 to see what true demand is,” he said.
Because of these temporary interventions in the market, Mr. Fuss said, “We’ll have to wait for 2015 to see what true demand is.” Even with a rebound in 2014, “the crisis will still be felt for a long time,” Carlos Da Silva, an analyst at IHS, wrote in a research note. “To put it directly, we do not think that the EU market will return to its 2007 peak. . . ever.”
The association’s data showed that Volkswagen, the largest European automaker, managed to hold the line with just a 0.6 percent decline in 2013, thanks to strong sales of its Seat and Skoda brands. The association’s data showed that Volkswagen, the largest European automaker, managed to hold the line with slight decline in 2013, thanks to strong sales of its Seat and Skoda brands.
But PSA Peugeot Citroën, the Continent’s second-largest carmaker, saw sales slide 8.4 percent. The French company is currently negotiating with the French government and Dongfeng Motor, a state-owned Chinese company, for a major infusion of capital to help it diversify beyond Europe and invest in new technology. But PSA Peugeot Citroën, the Continent’s second-largest carmaker, saw a steady slide in sales. The French company is currently negotiating with the French government and Dongfeng Motor, a state-owned Chinese company, for a major infusion of capital to help it diversify beyond Europe and invest in new technology.
Its French rival, Renault, managed a small gain in sales, thanks to the runaway performance of its low-cost Dacia brand, which posted a 23.3 percent gain in 2013 — by far and away the biggest increase of any brand in Europe. Its French rival, Renault, managed a small increase in sales, thanks to the runaway performance of its low-cost Dacia brand, which posted a 23.3 percent gain in 2013 — by far and away the biggest increase of any brand in Europe.
Detroit automakers had another tough year in Europe, even as their business improved in the United States and in other overseas markets. General Motors’ sales fell 4.3 percent, and Ford Motor’s fell 3.2 percent. Fiat, the Italian automaker that is taking full ownership of Chrysler, posted a 7.1 percent decline. Other strong gains were posted by Mazda and Jaguar, while Chevrolet and Lexus were among the steeper declines.
The British auto market grew by nearly 11 percent, helped by easy financing and a more robust economic recovery than on the Continent. Germany, the biggest European market, slipped 4.2 percent. Detroit’s General Motors and Ford had another tough year in Europe, even as their business improved in the United States and in other overseas markets. Fiat, the Italian automaker that is taking full ownership of Chrysler, posted a 7.1 percent decline.
There was significant variation between markets, as well. Britain’s was the strongest of the major European Union nations, growing nearly 11 percent in 2013, but that had more to do with easy financing terms than the country’s relatively strong economy. Spain, despite suffering from depression-level unemployment, managed 3.3 percent growth on the basis of government-sponsored trade-in incentives. Germany, the supposed engine of the European economy, saw its sales slide 4.2 percent.
BMW’s mainstay premium lineup was almost unchanged, but its overall sales dropped as its Mini brand faltered.
Mr. Fuss said a key question in the new year would be whether President François Hollande’s new economic policy initiatives would bring down the French jobless rate and reinvigorate a market that shrank by 5.7 percent in 2013.Mr. Fuss said a key question in the new year would be whether President François Hollande’s new economic policy initiatives would bring down the French jobless rate and reinvigorate a market that shrank by 5.7 percent in 2013.